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Abstract
Higher growth of an economy and open market system is always given the preferential attitude in the economic agenda of a country. To setting a target to achieve a desired growth largely depend on the performance of the various sectors of the country’s economy. The day by day rate of corruption is so high that the country’s progress has come to a dead end. Foreign direct investment is now of growing importance to global economic growth. FDI facilitate international trade, transfer of knowledge, trade openness, market size. For a developing country like India, Foreign Direct Investment is considered as a developmental tool and used to bridge the gap between domestic savings and investment, especially in developing and under developed economies. To projecting India as a destination of ease of doing business, the insurance sector has a great potential. The main emphasis is to mobilize national savings and channelize them into investment in different sectors of economy which would increase the diffusion of insurance in India. In India, insurance sector is the only avenue where people put in money for as long as 30 years. Despite many years of parliamentary debate, the present NDA Government getting a green signal to pass the Insurance Laws (Amendment) Act, 2015 seek to increase the cap on foreign direct investment in the insurance sector from 26% to 49% but the regulations have still lots of restrictions and plethora of uncertainties. Due to economic liberalization started few years ago, the wave of liberalization and globalization sweeping across the world has opened many national markets for international business. This research paper’s objectives are to investigate the current scenario of FDI in insurance, reasons behind the urgent needs to attract more FDI, major reforms and overview of the policy and regulatory environment in North East Indian perspective.